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Vegas was even better than our Street high estimate even after normalizing the high hold.

 

HIGHLIGHTS FROM THE RELEASE

  • Net revenue $1,260MM and Adjusted Property EBITDA of $405MM
    • Wynn Macau: Net revenue of $866MM and Adjusted Property EBITDA of $273MM
    • Wynn Las Vegas:  Net revenue of $395MM and Adjusted Property EBITDA of $132MM
  • "Wynn Resorts also announced today that its Board of Directors has approved a cash dividend for the quarter of $0.50 per common share. This dividend will be payable on May 17, 2011 to stockholders of record on May 3, 2011."
  • Cash:  $1.4BN
  • Debt:  $3.2BN with $2.6BN at Wynn Las Vegas and $551 at Wynn Macau

CALL NOTES

  • Business in Las Vegas has improved and Wynn raised their rates and they had no problems. Enjoying the benefits from the investment in their product as well - room remodel; beach club; baccarat remodel 
  • $503MM of revenue for the first 108 days of the year in Las Vegas
  • In April, they are still doing very well in Las Vegas
  • Up until April 21st, Macau comparisons are against Wynn Macau only
  • Business is terrific

 

Q&A

  • 243 VIP tables in Macau this quarter
  • It's not just the additional junkets that are driving results in Macau - it's also their Mass and Slot business as well as non-gaming revenue
  • Have 10% of the table games in the market share and 14% for slots; they have 22% market share and only 8% of the slots
  • They will always maintain a conservative balance sheet. They increased their dividend to $0.50 per quarter. However, they are still a growth company so they want to keep plenty of dry powder.
  • No update on Cotai license
  • Only 22% of their business was in the leisure segment vs. 32% last year in Las Vegas
  • Cotai budget? Between $2-3BN; will finalize over the next few months.
  • Instead of a show in Macau, they prefer public entertainment since their customers come so frequently
  • Internet Poker? Partnered up with PokerStars but the DOJ was indicted on violation of UIGEA. There are other companies that approached them that haven't violated UIGEA that would like to partner with them.
  • Having a baccarat business in Vegas requires having deep connections with Asian customers. It's very expensive to start a baccarat business. 
  • Gross receivables are $175MM with $70MM reserved in Vegas alone - mainly due to their baccarat business
  • In Macau, 81MM in receivables and 50MM reserved.
  • When did the 20 tables get added in Macau in 2Q? Have 499 games in Macau - they are getting close to their table allocation but still have a little room
  • Second quarter in Vegas still feels pretty good. July/August is soft, but 4Q looks pretty good as well. 
  • 2.5x fair share on tables in Las Vegas and at fair share for slots